'Not Good:' Elon Musk Expresses Concern for High Tech Manufacturing as Silver Prices Soar

The recent surge in silver prices has raised alarms among manufacturers, including tech tycoon Elon Musk, who expressed his concerns on social media platform X.

Quartz reports that silver prices have reached unprecedented levels, hitting a record high of $80 an ounce on Friday. This marks an incredible 179 percent year-to-date increase from the $29 an ounce price at the beginning of the year. The dramatic rise in silver prices has been driven by a combination of factors, including geopolitical risks prompting investors to seek safe-haven assets and expectations of a more lenient Federal Reserve policy in 2026.

However, the primary catalyst for the recent surge appears to be the impending export restrictions set to be imposed by China starting January 1, 2026. These restrictions have exacerbated the already high demand for silver, fueling supply concerns and contributing to the metal’s soaring prices.

The potential impact of these skyrocketing silver prices has not gone unnoticed by industry leaders. Elon Musk, the tech billionaire deeply involved in high tech manufacturing with Tesla and SpaceX, took to social media platform X to express his apprehension. In response to a post about the Chinese export restrictions, Musk wrote, “This is not good. Silver is needed in many industrial processes.”

Silver plays a crucial role in various energy and technology sectors. The metal is an essential component in solar panels, forming the conductive layer that enables the conversion of sunlight into electricity. Additionally, silver is widely used in the wiring and electronics of vehicles, as well as in the contacts and circuit boards that facilitate power management and processing in data centers. As a result, the rising silver prices could have significant ramifications for these industries if the trend persists.

China’s decision to implement export limits on silver is part of the country’s broader strategy to assert greater control over strategic minerals. This move has not only caught the attention of industry leaders like Musk but has also garnered increased interest from investors, commentators, and market observers.

Tony Sycamore, a market analyst at IG Australia, warned, “Make no mistake: we are witnessing a generational bubble playing out in silver. With new mines taking up to 10 years to develop and capital being drawn into the precious metals bubble like a moth to a flame, it is impossible to say when the air might come out.”

Sycamore further highlighted the severity of the supply-demand imbalance, noting, “The dominant driver of late has been a severe structural supply-demand imbalance in silver, sparking a scramble for physical metal. Buyers are now paying a remarkable seven percent premium for immediate delivery compared to waiting a year.”

The silver price surge is not an isolated phenomenon, as other precious metals have also experienced significant gains. Gold, in particular, has had its best year since 1979, rising more than 70 percent to surpass $4,500 an ounce from $2,623 at the start of 2025.